DICK SMITH TO BE PUT OUT OF ITS MISERY

Dick Smith's receivers yesterday afternoon said they would be putting the troubled retailer to rest in the next 8 weeks.

Ferrier Hodgson yesterday announced that the remaining Dick Smith and Move stores (excluding airport locations) in Australia and New Zealand will close.

The receiver says although there were "a significant number" of local and international expressions of interest, there were no acceptable offers for the group as a whole, or for Australia or New Zealand as standalone businesses.

"The offers were either significantly below liquidation values or highly conditional or both,” says Ferrier Hodgson.

The closure of the physical stores - 301 in Australia and 62 in New Zealand - involving over 2,400 staff in Australia and approximately 430 in New Zealand will take around eight weeks.

Ferrier Hodgson says this is "a very disappointing outcome for the employees of Dick Smith who have given loyal service to the business,” and then proceeded to thank them "for their support and patience" as the receivership process was carried out.

All Australian employee entitlements rank as priority unsecured claims ahead of the secured creditors and are expected to be paid in full.

Entitlements of New Zealand employees who are made redundant are preferential claims ranking ahead of the secured creditors, and are expected to be paid in full up to a maximum statutory limit of NZD$22,160 under New Zealand law.

So, the worst predictions about the future of the 50 year-old retailer came true after all. As we said in our February issue: "informed gossip around the channel suggests none of Dick Smith’s rivals will step up and buy the brand, premises and assets."

Now that the brand's history appears to be at an end, here's a potted version to peruse: